Since nearly all of us in Sevier County make our living in the tourism industry, we are especially mindful of the state of
the economy. If people elsewhere can not afford to put fuel in their car and go somewhere, particularly these beautiful Smoky Mountains , neither can we. So, allow me to risk overstating the obvious by saying that the price and availability of fuel in America has much to do with our ability to feed, house and clothe our families.
Because this is an election year, it is necessary for some to convince as many of us as possible that the world is going to Hades and the only people capable of stopping this rapid descent are the ones running for pubic office. Unfortunately, in large part, it is the actions of these folks and others like them that often take us down roads better left untraveled.
For example, let’s address the notion that because the price of gasoline has visited the $4 per gallon mark and oil companies are achieving record profits, the government should punish them with punitive taxes. After all it is easy to convince people who are hurting that the rich are to blame and must pay for their greed. However, in this particular case, we will not be attacking the wealthy, as the oil companies are mostly owned by ordinary people.
So, who really does own Big Oil? While the US Congress deliberates yet another national energy policy, studies reveal that ownership of American oil and natural gas company shares is made up of a broad cross section of citizens, disproving the accepted fallacy that the oil and gas industries are owned by a small group of billionaire insiders.
Actually, only about 1.5 percent of shares of these public companies are owned by company executives. Published data shows that ownership of industry shares is largely middle class, with the majority of shares held by institutional investors, representing millions of Americans with mutual funds, pension funds and individual retirement accounts. Consequently, when populist politicians threaten to punish these companies and confiscate their profits, they are not targeting industry fat cats, but the hard earned savings of working people.
Over 40% of oil and natural gas shares are owned by the mutual funds of 55 million US households with a median annual income of just over $68,000, while 27% of shares are owned by a variety of pension funds. These funds greatly represent the major retirement security for our nation’s active and retired soldiers, teachers, police and fire personnel. Almost 15% of shares are held in IRA and other personal retirement accounts, representing 45 million US households with an average account value of about $22,000.
While populism has determined the outcome of elections past, to point to a populist view to support a political view is often dishonest at best. What must be understood is that it is essential to the populist to convince the masses, but it is also important for us to realize that just because the masses now believe something, does not mean they are correct.
Though I may not like paying $4 per gallon for gasoline will not change the fact that oil companies simply are not owned by a few rich white guys. Certainly, there are some, but that's not who will be hurt the most if the populists have their way. Homework may not be the sexiest way to spend an evening, but it can help prevent us from using our own votes against ourselves.
Henry Piarrot is a hotel manager in Sevier County, TN. Please send all story recommendations to hpiarrot@yahoo.com